July 27, 2016

Martin Midstream Partners Reports 2016 Second Quarter Financial Results

  • Maintained distribution of $0.8125
  • Strong second quarter sulfur services and fertilizer performance
  • Challenging marine fundamentals continue

KILGORE, Texas, July 27, 2016 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership") announced today its financial results for the quarter ended June 30, 2016.

Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership said, "The challenging environment we referenced at the end of the first quarter continued into second-quarter 2016 results. The Partnership's distributable cash flow for the second-quarter 2016 did not meet our internal forecast.  Higher than anticipated maintenance capital expenditures of $5.4 million and weak operating results from our Marine Transportation segment resulted in a distribution coverage ratio of 0.76 times.  We expect maintenance capital and turnaround expenditures to be significantly lower in the second half of the year, as we have spent approximately $12.4 million of the budgeted $18.9 million through the first six months of 2016.

"Across our businesses, Natural Gas Services segment results were lower than anticipated from a combination of the seasonally weaker refinery grade butane and legacy natural gas liquids businesses.  Further, distributions from the West Texas LPG pipeline were weaker than forecast due to the previously announced revision to prior tariffs mandated by the Railroad Commission of Texas and elevated maintenance capital expenditures at the joint venture.  This was offset by outperformance in our Cardinal Gas Storage division where interruptible revenue continued to be strong.

"Our Terminalling and Storage segment exceeded planned performance during the second quarter benefiting from a modest recovery in our lubricants platform, including strong performance in our grease business.  In addition, our legacy specialty terminals and the Smackover refinery were stronger in the second quarter based on lower operating expenses and lower than anticipated repair and maintenance expenses.

"Within our Sulfur Services segment, as expected, the delayed first-quarter fertilizer application pushed volumes into the second quarter producing enhanced results.  Through two quarters, we have achieved our full year cash flow guidance in fertilizer.  While we expect usual segment seasonality heading into the third and fourth quarters, overall fertilizer fundamentals continue to be strong.

"In our Marine Transportation segment, we continue to see an abundance of supply of marine equipment in our predominantly Gulf Coast by-product and refined product markets.  This translated to lower than anticipated utilization and day rates particularly in our inland business.  Further, regulatory dry-docking and repair and maintenance expenses continued into the second quarter.  Additionally, we encountered higher than anticipated maintenance capital expenditures associated with our marine assets that are housed within our Sulfur Services segment further decreasing distributable cash flow.

"Looking forward, management is focused on multiple initiatives to improve our leverage profile and distribution coverage ratio both near and long-term.  We look forward to providing more details on these initiatives prior to the end of the year."

As a result of a $4.1 million non-cash goodwill impairment charge in the Partnership's Marine Transportation segment, the Partnership had a net loss for the second quarter of 2016 of $1.2 million, a loss of $0.14 per limited partner unit.  Net income for the second quarter of 2015 was $11.0 million, or $0.19 per limited partner unit.  The Partnership's adjusted EBITDA from continuing operations for the second quarter of 2016 was $41.6 million compared to adjusted EBITDA from continuing operations for the second quarter of 2015 of $45.0 million, a decrease of 8%.

Net income from continuing operations for the six months ended June 30, 2016 was $14.7 million, or $0.19 per limited partner unit.  Net income from continuing operations for the six months ended of 2015 was $27.0 million, or $0.54 per limited partner unit.  Net income for the six months ended June 30, 2016 was negatively impacted by a non-cash goodwill impairment charge in the Partnership's Marine Transportation segment of $4.1 million, or $0.12 per limited partner unit. The Partnership's adjusted EBITDA from continuing operations for the six months ended June 30, 2016 was $90.9 million compared to adjusted EBITDA from continuing operations for the six months ended June 30, 2015 of $95.4 million, a decrease of 5%.

The Partnership's distributable cash flow from continuing operations for the second quarter of 2016 was $25.4 million compared to distributable cash flow from continuing operations for the second quarter of 2015 of $31.9 million, a decrease of 20%.

The Partnership's distributable cash flow from continuing operations for the six months ended June 30, 2016 was $57.9 million compared to distributable cash flow from continuing operations for the six months ended June 30, 2015 of $69.0 million, a decrease of 16%.

Revenues for the second quarter of 2016 were $190.3 million compared to $251.1 million for the second quarter of 2015.  Revenues for the six months ended June 30, 2016 were $416.0 million compared to $556.5 million for the six months ended June 30, 2015.

On February 12, 2015, the Partnership exited the natural gas liquids floating storage and trans-loading businesses as a result of the sale of its six liquefied petroleum gas pressure barges, collectively referred to as the "Floating Storage Assets", for $41.3 million.  The Partnership recorded a gain on the disposition of $1.5 million.

The Partnership had no net income, distributable cash flow or adjusted EBITDA from discontinued operations related to the Floating Storage Assets for the three and six months ended June 30, 2016.

The Partnership had no net income, distributable cash flow or adjusted EBITDA from discontinued operations related to the Floating Storage Assets for the three months ended June 30, 2015.  The Partnership had net income from discontinued operations for the six months ended June 30, 2015 of $1.2 million, or $0.02 per limited partner unit.  Distributable cash flow and adjusted EBITDA from discontinued operations were $1.2 million for the six months ended June 30, 2015.

Distributable cash flow, EBITDA and adjusted EBITDA are non-GAAP financial measures which are explained in greater detail below under the heading "Use of Non-GAAP Financial Information."  The Partnership has also included below a table entitled "Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow" in order to show the components of these non-GAAP financial measures and their reconciliation to the most directly comparable GAAP measurement.

Included with this press release are the Partnership's consolidated and condensed financial statements as of and for the three and six months ended June 30, 2016 and certain prior periods.  These financial statements should be read in conjunction with the information contained in the Partnership's Quarterly Report on Form 10-Q, to be filed with the Securities and Exchange Commission on July 27, 2016.

An attachment accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/3546b3bb-58bf-4b2a-95bd-bb0806e7cb41.

Quarterly Cash Distribution

The quarterly cash distribution of $0.8125 per common unit, which was announced on July 21, 2016, is payable on August 12, 2016 to common unitholders of record as of the close of business on August 5, 2016.  The ex-dividend date for the cash distribution is August 3, 2016.  This distribution reflects an annualized distribution rate of $3.25 per unit.

Investors' Conference Call

An investors' conference call to review the second quarter results will be held on Thursday, July 28, 2016, at 8:00 a.m. Central Time. The conference call can be accessed by calling (877) 878-2695. Additionally, an accompanying slide and live webcast will be available by visiting Martin Midstream Partners' website at www.martinmidstream.com.  An audio replay of the conference call will be available by calling (855) 859-2056 from 11:00 a.m. Central Time on July 28, 2016 through 10:59 p.m. Central Time on August 8, 2016.  The access code for the conference call and the audio replay is Conference ID No. 40605761.  The audio replay will also be archived under the Events and Presentations section of the Partnership's website.

About Martin Midstream Partners

The Partnership is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. The Partnership's primary business segments include: (1)  terminalling, storage and packaging services for petroleum products and by-products; (2) natural gas services, including liquids transportation and distribution services and natural gas storage; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) marine transportation services for petroleum products and by-products.

Forward-Looking Statements

Statements about the Partnership's outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the Partnership's control, which could cause actual results to differ materially from such statements.  While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors.  A discussion of these factors, including risks and uncertainties, is set forth in the Partnership's annual and quarterly reports filed from time to time with the Securities and Exchange Commission.  The Partnership disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise.

Use of Non-GAAP Financial Information

The Partnership's management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP") to analyze its performance. These include: (1) net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), (2) adjusted EBITDA and (3) distributable cash flow.  The Partnership's management views these measures as important performance measures of core profitability for its operations and the ability to generate and distribute cash flow, and as key components of its internal financial reporting. The Partnership's management believes investors benefit from having access to the same financial measures that management uses.

EBITDA and Adjusted EBITDA.  Certain items excluded from EBITDA and adjusted EBITDA are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets. The Partnership has included information concerning EBITDA and adjusted EBITDA because it provides investors and management with additional information to better understand the following: financial performance of the Partnership's assets without regard to financing methods, capital structure or historical cost basis; the Partnership's operating performance and return on capital as compared to those of other similarly situated entities; and the viability of acquisitions and capital expenditure projects.  The Partnership's method of computing adjusted EBITDA may not be the same method used to compute similar measures reported by other entities. The economic substance behind the Partnership's use of adjusted EBITDA is to measure the ability of the Partnership's assets to generate cash sufficient to pay interest costs, support its indebtedness and make distributions to its unitholders.

Distributable Cash Flow.  Distributable cash flow is a significant performance measure used by the Partnership's management and by external users of its financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by the Partnership to the cash distributions it expects to pay unitholders.  Distributable cash flow is also an important financial measure for the Partnership's unitholders since it serves as an indicator of the Partnership's success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not the Partnership is generating cash flow at a level that can sustain or support an increase in its quarterly distribution rates.  Distributable cash flow is also a quantitative standard used throughout the investment community with respect to publicly-traded partnerships because the value of a unit of such an entity is generally determined by the unit's yield, which in turn is based on the amount of cash distributions the entity pays to a unitholder.

EBITDA, adjusted EBITDA and distributable cash flow should not be considered alternatives to, or more meaningful than, net income, cash flows from operating activities, or any other measure presented in accordance with GAAP. The Partnership's method of computing these measures may not be the same method used to compute similar measures reported by other entities.

Additional information concerning the Partnership is available on the Partnership's website at www.martinmidstream.com

Contact:   Joe McCreery, IRC, Head of Investor Relations, at (903) 988-6425 and (877) 256-6644.


 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)
 
 June 30,
2016
 December 31,
2015
 (Unaudited) (Audited)
Assets   
Cash$28  $31 
Accounts and other receivables, less allowance for doubtful accounts of $372 and $430, respectively  50,360  74,355 
Product exchange receivables118  1,050 
Inventories90,636  75,870 
Due from affiliates7,972  10,126 
Fair value of derivatives   675 
Other current assets5,129  5,718 
Total current assets154,243  167,825 
    
Property, plant and equipment, at cost1,391,544  1,387,814 
Accumulated depreciation(422,465) (404,574)
Property, plant and equipment, net969,079  983,240 
    
Goodwill19,657  23,802 
Investment in WTLPG130,474  132,292 
Note receivable - Martin Energy Trading LLC15,000  15,000 
Other assets, net53,279  58,314 
Total assets$1,341,732  $1,380,473 
    
Liabilities and Partners' Capital   
Trade and other accounts payable$81,836  $81,180 
Product exchange payables8,809  12,732 
Due to affiliates3,859  5,738 
Income taxes payable370  985 
Fair value of derivatives862   
Other accrued liabilities20,663  18,533 
Total current liabilities116,399  119,168 
     
Long-term debt, net878,891  865,003 
Fair value of derivatives  206 
Other long-term obligations2,551  2,217 
Total liabilities997,841  986,594 
    
Commitments and contingencies (Note 16)   
Partners' capital343,891  393,879 
Total partners' capital343,891  393,879 
Total liabilities and partners' capital$1,341,732  $1,380,473 
        

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on July 27, 2016.

 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars and units in thousands, except per unit amounts)
 
 Three Months Ended Six Months Ended
 June 30, June 30,
 2016  2015 2016 2015
Revenues:       
Terminalling and storage *$31,090  $33,453  $62,795  $67,250  
Marine transportation *14,339  20,343  30,685  40,979 
Natural gas services*15,403  16,564  31,500  33,051 
Sulfur services2,700  3,090  5,400  6,180 
Product sales: *       
Natural gas services58,899  97,786  149,990  244,089 
Sulfur services39,588  45,284  79,063  95,331 
Terminalling and storage28,329  34,579  56,520  69,572 
 126,816  177,649  285,573  408,992 
Total revenues190,348  251,099  415,953  556,452 
        
Costs and expenses:       
Cost of products sold: (excluding depreciation and amortization)         
Natural gas services *55,579  88,623  134,123  226,330 
Sulfur services *24,700  33,518  52,224  69,541 
Terminalling and storage *22,934  29,658   46,766  59,740 
 103,213  151,799  233,113  355,611 
Expenses:       
Operating expenses *40,822  47,783  82,054  93,089 
Selling, general and administrative *8,144   9,035  16,315  17,841 
Loss on impairment of goodwill4,145    4,145   
Depreciation and amortization22,089  22,685  44,137  45,402 
Total costs and expenses178,413  231,302   379,764  511,943 
        
Other operating loss(1,679) (167) (1,595) (177)
Operating income10,256  19,630  34,594  44,332 
        
Other income (expense):       
Equity in earnings of WTLPG805  1,649  2,482  3,389 
Interest expense, net(12,155) (9,925) (22,267) (20,471)
Other, net 74  (79) 136  358 
Total other expense(11,276) (8,355) (19,649) (16,724)
        
Net income (loss) before taxes(1,020) 11,275  14,945  27,608 
Income tax expense(191) (314) (242) (614)
Income (loss) from continuing operations(1,211) 10,961  14,703  26,994 
Income from discontinued operations, net of income taxes      1,215 
Net income (loss)(1,211) 10,961   14,703  28,209 
Less general partner's interest in net income(3,869) (4,113) (8,080) (8,351)
Less (income) loss allocable to unvested restricted units4  (44) (39) (111)
Limited partners' interest in net income (loss)$(5,076) $6,804  $6,584  $19,747 
                

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on July 27, 2016.

*Related Party Transactions Shown Below

 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars and units in thousands, except per unit amounts)
 
*Related Party Transactions Included Above
 
 Three Months Ended  Six Months Ended
 June 30, June 30,
 2016 2015 2016 2015
Revenues:*       
Terminalling and storage$20,590  $23,061  $41,548  $43,535 
Marine transportation6,036  6,622  12,447  13,367 
Natural gas services129    442   
Product Sales968  1,759  1,668  3,348 
Costs and expenses:*       
Cost of products sold: (excluding depreciation and amortization)         
Natural gas services4,498  6,810  7,883  13,728 
Sulfur services3,810  3,618  7,622  7,242 
Terminalling and storage4,081  5,632  7,466  11,034 
Expenses:       
Operating expenses18,088  18,915  35,445  39,315 
Selling, general and administrative6,911  5,849  12,343  11,843 
            

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on July 27, 2016.

 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars and units in thousands, except per unit amounts)
 
 Three Months Ended Six Months Ended
 June 30, June 30,
 2016 2015 2016 2015
Allocation of net income (loss) attributable to:       
Limited partner interest:       
Continuing operations$(5,076) $6,804  $6,584  $18,896 
Discontinued operations      851 
 $(5,076) $6,804  $6,584  $19,747 
General partner interest:        
Continuing operations$3,869  $4,113  $8,080  $7,992 
Discontinued operations      359 
 $3,869  $4,113  $8,080  $8,351 
        
Net income (loss) per unit attributable to limited partners:         
Basic:       
Continuing operations$(0.14) $0.19  $0.19  $0.54 
Discontinued operations      0.02 
 $(0.14) $0.19  $0.19  $0.56 
        
   Weighted average limited partner units - basic35,346  35,308  35,366  35,316 
        
Diluted:       
Continuing operations$(0.14) $0.19  $0.19   $0.54 
Discontinued operations       0.02 
 $(0.14) $0.19   $0.19  $0.56 
        
   Weighted average limited partner units - diluted35,346  35,376  35,380  35,372 
            

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on July 27, 2016.

 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL
(Unaudited)
(Dollars in thousands)
 
 Partners' Capital  
 Common Limited General
Partner
Amount
  
 Units Amount  Total
Balances - January 1, 201535,365,912  $470,943  $14,728  $485,671 
Net income  19,858  8,351  28,209 
Issuance of common units, net  (269)   (269)
Issuance of restricted units91,950       
Forfeiture of restricted units(1,000)      
General partner contribution     55  55 
Cash distributions  (57,612) (8,965) (66,577)
Reimbursement of excess purchase price over carrying value of acquired assets    750    750 
Unit-based compensation  750    750 
Balances - June 30, 201535,456,862  $434,420  $14,169  $448,589 
        
Balances - January 1, 201635,456,612  $380,845  $13,034  $393,879 
Net income  6,623  8,080  14,703  
Issuance of restricted units13,800       
Forfeiture of restricted units(250)      
Cash distributions  (57,603) (9,119) (66,722)
Unit-based compensation  486    486 
Reimbursement of excess purchase price over carrying value of acquired assets  1,875    1,875 
Purchase of treasury units(15,200) (330)   (330)
Balances - June 30, 201635,454,962  $331,896  $11,995  $343,891 
               

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on July 27, 2016.


 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
 
 Six Months Ended
 June 30,
 2016 2015
Cash flows from operating activities:   
Net income$14,703  $28,209 
Less: Income from discontinued operations, net of income taxes  (1,215)
Net income from continuing operations14,703  26,994 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation and amortization44,137  45,402 
Amortization of deferred debt issuance costs2,247  1,742 
Amortization of premium on notes payable(153) (164)
Loss (gain) on sale of property, plant and equipment1,595  165 
Loss on impairment of goodwill4,145   
Equity in earnings of unconsolidated entities(2,482) (3,389)
Derivative income(1,125) (1,745)
Net cash received for commodity derivatives1,666   
Net cash received for interest rate derivatives160   
Net premiums received on derivatives that settled during the year on interest rate swaption contracts  630  1,745 
Unit-based compensation486  750 
Cash distributions from WTLPG 4,300  4,400 
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:   
 Accounts and other receivables23,995  58,689 
 Product exchange receivables932  2,752 
 Inventories(14,766) 12,204 
 Due from affiliates2,154  3,800 
 Other current assets509  (711)
 Trade and other accounts payable(3,429) (46,283)
 Product exchange payables(3,923) 2,308 
 Due to affiliates(1,879) (118)
 Income taxes payable(615) (438)
 Other accrued liabilities2,130  (959)
Change in other non-current assets and liabilities(614) (1,709)
  Net cash provided by continuing operating activities74,803  105,435 
  Net cash used in discontinued operating activities  (1,351)
  Net cash provided by operating activities 74,803  104,084 
Cash flows from investing activities:   
Payments for property, plant and equipment(27,844) (28,027)
Acquisition of intangible assets(2,150)  
Payments for plant turnaround costs(1,184) (1,754)
Proceeds from sale of property, plant and equipment655  776 
Proceeds from involuntary conversion of property, plant and equipment9,100   
  Net cash used in continuing investing activities(21,423) (29,005)
  Net cash provided by discontinued investing activities  41,250 
  Net cash provided by (used in) investing activities(21,423) 12,245 
Cash flows from financing activities:   
Payments of long-term debt(163,700) (151,000)
Proceeds from long-term debt180,700  101,000 
Proceeds from issuance of common units, net of issuance related costs  (269)
General partner contribution  55 
Purchase of treasury units(330)  
Payment of debt issuance costs(5,206) (306)
Reimbursement of excess purchase price over carrying value of acquired assets1,875  750 
Cash distributions paid(66,722) (66,577)
  Net cash used in financing activities(53,383) (116,347)
  Net decrease in cash(3) (18)
Cash at beginning of period31  42 
Cash at end of period$28  $24 
Non-cash additions to property, plant and equipment$989  $3,767 
        

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on July 27, 2016.

 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Unaudited)
(Dollars and volumes in thousands, except BBL per day)
 
Terminalling and Storage Segment
 
Comparative Results of Operations for the Three Months Ended June 30, 2016 and 2015
 
 Three Months Ended
June 30,
 Variance Percent
Change
 2016 2015  
 (In thousands, except BBL per day)  
Revenues:       
Services$32,392  $34,708  $(2,316)  (7)%
Products28,329  34,579  (6,250) (18)%
Total revenues60,721  69,287  (8,566) (12)%
        
Cost of products sold23,471  30,150   (6,679) (22)%
Operating expenses17,725  22,326  (4,601) (21)%
Selling, general and administrative expenses1,007  938  69  7%
Depreciation and amortization10,078  9,617  461  5%
 8,440  6,256  2,184  35%
Other operating loss  (195) 195  (100)%
Operating income$8,440  $6,061  $2,379  39%
        
Lubricant sales volumes (gallons)5,194  5,984  (790) (13)%
Shore-based throughput volumes (gallons)26,187  43,836  (17,649) (40)%
Smackover refinery throughput volumes (BBL per day)  6,567  6,524  43  1%
Corpus Christi crude terminal (BBL per day)74,565  169,787  (95,222) (56)%
            


Comparative Results of Operations for the Six Months Ended June 30, 2016 and 2015
 
 Six Months Ended
June 30,
 Variance Percent
Change
  2016 2015  
 (In thousands, except BBL per day)  
Revenues:       
Services$65,549  $69,749  $(4,200 ) (6)%
Products56,522  69,572  (13,050) (19)%
Total revenues122,071  139,321  (17,250) (12)%
        
Cost of products sold47,821  61,311   (13,490) (22)%
Operating expenses36,441  42,679  (6,238) (15)%
Selling, general and administrative expenses2,107  1,811  296  16%
Depreciation and amortization20,076  19,406  670   3%
 15,626  14,114  1,512  11%
Other operating income (loss)100  (201) 301  (150 )%
Operating income$15,726  $13,913  $1,813  13%
        
Lubricant sales volumes (gallons)10,340  12,033  (1,693) (14)%
Shore-based throughput volumes (gallons)51,746  86,360  (34,614) (40)%
Smackover refinery throughput volumes (BBL per day)  5,503  6,033  (530) (9)%
Corpus Christi crude terminal (BBL per day)83,600  175,151  (91,551) (52)%
            


 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Unaudited)
(Dollars and volumes in thousands, except BBL per day)
 
Natural Gas Services Segment
 
Comparative Results of Operations for the Three Months Ended June 30, 2016 and 2015
 
 Three Months Ended
June 30,
 Variance Percent
Change
 2016 2015  
 (In thousands)  
Revenues:       
Services$15,403  $16,564  $ (1,161) (7)%
Products58,899  97,786  (38,887) (40)%
Total revenues74,302  114,350  (40,048) (35)%
        
Cost of products sold56,233  89,074  (32,841) (37)%
Operating expenses6,138  5,727  411  7%
Selling, general and administrative expenses  1,807  2,364  (557) (24)%
Depreciation and amortization6,983  8,373   (1,390) (17)%
 3,141  8,812  (5,671) (64)%
Other operating loss(96) (3) (93) 3,100%
Operating income$3,045  $8,809  $(5,764) (65)%
        
Distributions from unconsolidated entities$1,800  $2,300  $(500) (22)%
        
NGL sales volumes (Bbls)1,726  3,220  (1,494) (46)%
            


Comparative Results of Operations for the Six Months Ended June 30, 2016 and 2015
 
 Six Months Ended
June 30,
 Variance Percent
Change
 2016 2015  
 (In thousands)  
Revenues:       
Services$31,500  $33,051  $(1,551) (5)%
Products149,990  244,089  (94,099) (39)%
Total revenues181,490  277,140  (95,650) (35)%
        
Cost of products sold135,581  227,241  (91,660)  (40)%
Operating expenses11,657  11,416  241  2%
Selling, general and administrative expenses    4,111  4,465  (354) (8)%
Depreciation and amortization13,957  16,775  (2,818) (17)%
 16,184  17,243  (1,059) (6)%
Other operating loss(96) (7) (89) 1,271%
Operating income$16,088  $17,236  $(1,148) (7)%
        
Distributions from unconsolidated entities$4,300  $4,400  $(100) (2)%
        
NGL sales volumes (Bbls)4,928  7,089  (2,161) (30)%
            


 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Unaudited)
(Dollars and volumes in thousands, except BBL per day)
 
Sulfur Services Segment
 
Comparative Results of Operations for the Three Months Ended June 30, 2016 and 2015
 
 Three Months Ended
June 30,
 Variance Percent
Change
 2016 2015  
 (In thousands)  
Revenues:       
Services$2,700  $3,090  $(390) (13)%
Products39,588  45,284   (5,696) (13)%
Total revenues42,288  48,374  (6,086) (13)%
        
Cost of products sold 24,790  33,613  (8,823) (26)%
Operating expenses3,442  3,987  (545) (14)%
Selling, general and administrative expenses  930  863  67  8%
Depreciation and amortization2,011  2,105  (94) (4)%
 11,115  7,806   3,309  42%
Other operating loss(16)   (16)  
Operating income$11,099  $7,806  $3,293  42%
         
Sulfur (long tons)181  222  (41)   (18)%
Fertilizer (long tons)87  82  5  6%
Total sulfur services volumes (long tons)268  304  (36) (12)%
            

        

Comparative Results of Operations for the Six Months Ended June 30, 2016 and 2015 
 
 Six Months Ended
June 30,
 Variance Percent
Change
 2016 2015   
 (In thousands)  
Revenues:       
Services$5,400  $6,180  $(780) (13)%
Products79,063  95,331  (16,268) (17)%
Total revenues84,463  101,511  (17,048) (17)%
        
Cost of products sold52,405  69,726  (17,321) (25)%
Operating expenses6,199  8,270  (2,071)   (25)%
Selling, general and administrative expenses        1,888  1,925  (37) (2)%
Depreciation and amortization3,981  4,231  (250) (6)%
 19,990  17,359  2,631  15%
Other operating loss(32)   (32)  
Operating income$19,958  $17,359  $2,599  15%
        
Sulfur (long tons)338  438  (100) (23)%
Fertilizer (long tons)170  178  (8) (4)%
Total sulfur services volumes (long tons)508  616  (108) (18)%
            


 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Unaudited)
(Dollars and volumes in thousands, except BBL per day)
 
Marine Transportation Segment
 
Comparative Results of Operations for the Three Months Ended June 30, 2016 and 2015
 
 Three Months Ended
June 30,
 Variance Percent
Change
 2016 2015  
 (In thousands)  
Revenues$15,032  $20,886  $(5,854)  (28)%
Operating expenses14,231  16,523  (2,292)  (14)%
Selling, general and administrative expenses  158  350  (192)  (55)%
Loss on impairment of goodwill4,145    4,145   
Depreciation and amortization3,017  2,590  427   16 %
 (6,519) 1,423  (7,942)  (558)%
Other operating income (loss)(1,567) 31  (1,598)  (5,155)%
Operating income (loss)$(8,086) $1,454  $(9,540)  (656)%
                

                

Comparative Results of Operations for the Six Months Ended June 30, 2016 and 2015
 
 Six Months Ended
June 30,
 Variance Percent
Change
 2016 2015   
 (In thousands)  
Revenues$31,934  $42,832  $(10,898)  (25)%
Operating expenses29,068  32,429  (3,361)  (10)%
Selling, general and administrative expenses    (261) 310  (571)  (184)%
Loss on impairment of goodwill4,145    4,145   
Depreciation and amortization6,123  4,990  1,133   23%
Operating income$(7,141) $5,103  $(12,244)  (240)%
Other operating income (loss)(1,567) 31  (1,598)  (5,155)%
Operating income (loss)$(8,708) $5,134  $(13,842)  (270)%
                 


Distributions from Unconsolidated Entities
 
Comparative Results of Operations for the Three Months Ended June 30, 2016 and 2015
 
 Three Months Ended
June 30,
 Variance Percent
Change
 2016 2015  
 (In thousands)  
Distributions from WTLPG                              $1,800  $2,300  $(500)   (22)%
                


Comparative Results of Operations for the Six Months Ended June 30, 2016 and 2015
 
 Six Months Ended
June 30,
 Variance Percent
Change
 2016 2015  
 (In thousands)  
Distributions from WTLPG                              $4,300  $4,400  $(100)       (2)%
               

Non-GAAP Financial Measures

The following table reconciles the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three and six months ended June 30, 2016 and 2015.

 
Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow
 
 Three Months Ended Six Months Ended
 June 30, June 30,
 2016 2015 2016 2015
 (in thousands)
Net income (loss)$(1,211) $10,961  $ 14,703  $28,209 
Less:  Income from discontinued operations, net of income taxes        (1,215)
Income (loss) from continuing operations(1,211) 10,961  14,703  26,994 
Adjustments:       
Interest expense12,155  9,925  22,267  20,471 
Income tax expense191  314  242  614 
Depreciation and amortization22,089  22,685  44,137  45,402 
EBITDA33,224  43,885  81,349  93,481 
Adjustments:        
Equity in earnings of unconsolidated entities(805) (1,649) (2,482) (3,389)
(Gain) loss on sale of property, plant and equipment1,679  153  1,595  165 
Loss on impairment of goodwill4,145    4,145   
Unrealized mark-to-market on commodity derivatives1,327    1,537   
Distributions from unconsolidated entities1,800  2,300  4,300  4,400 
Unit-based compensation264   351  486  750 
Adjusted EBITDA41,634  45,040  90,930  95,407 
Adjustments:       
Interest expense(12,155) (9,925) (22,267) (20,471)
Income tax expense(191) (314) (242) (614)
Amortization of debt premium(76) (82) (153) (164)
Amortization of deferred debt issuance costs1,532  874  2,247  1,742 
Non-cash mark-to-market on interest rate derivatives    (206)  
Payments for plant turnaround costs(193) (286) (1,184) (1,754)
Maintenance capital expenditures(5,165) (3,424)  (11,209) (5,183)
Distributable Cash Flow$25,386  $31,883  $57,916  $68,963 
                

 

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